Bad actors: Battling fraud in the transportation industry
An alarming trend in the transportation industry is nefarious players using a carrier’s credentials.
Some carriers have seen other parties using their Federal Motor Carrier Safety Administration (FMCSA) issued DOT numbers on the road, and to secure and bill customers. Others have had their DOT number taken over and changes made to their contact information (address, phone numbers, etc.) and the carrier's principal parties.
These corrupt players then use carrier’s DOT number or credentials to secure freight, haul cargo they are not authorized to haul, avoid the consequences of bad roadside inspections, and send out bills for service either not performed or performed illegally. The question becomes; how do you prevent it and/or deal with it?
Preventing it
As a carrier, take these steps to protect your credentials:
- Avoid sharing private information related to your DOT number (carrier PIN or FMCSA portal user and password information, DataQs user information, etc.) with anyone you do not know and trust.
- Take security measures to protect the information, such as not having user information and passwords on notes next to the computer or on electronic devices prone to hacking, and using strong passphrases.
- Limit access to the areas specific employees need (as an example, not all employees need access to your FMCSA portal).
- Be diligent about checking the information FMCSA has on you and you need to pay attention to “odd” complaints (either directly or online).
Roadside data
If you are checking your data (either in the Safety Measurement System or the FMCSA portal) and see a crash or roadside inspection that appears to not be yours, immediately investigate it. Did the incident involve a new driver, new vehicle, or a driver and/or vehicle that has just been leased to your company? If it was, the problem would be solved. If it was not, move to the next step.
The next step is contacting the officer or agency involved and trying to determine why your credentials are on a crash or roadside inspection you were not involved in. It could be a simple error by the officer (the officer recorded the DOT number incorrectly) or it could be someone using your credentials. If it was someone using your credentials without your permission, immediately file a police report. This will create a record of the event and can be referenced by law enforcement later if a fraud investigation is initiated.
Also, when filing a DataQs in such cases, many agencies will require a police report if the carrier is claiming fraud. They will not remove a roadside inspection or crash that the carrier is claiming involved fraud, unless there is a police report on file documenting the misuse of the carrier’s credentials (fraud).
Customers complaints that are not yours
If you receive a complaint about a shipment that you did not haul, investigate by contacting the shipper and receiver, using known contact information. (To avoid scams, don’t just call back the number provided.) If someone is using your credentials to secure freight and/or bill people, immediately contact the police and file a police report. This way, if there was fraud involved, you have started a documentation trail showing that you were a victim, and not the perpetrator.
Key to remember: The way to avoid having your credentials misused is to secure them.Track your data, pay attention to your data and any complaints you are receiving, and take action (working with law enforcement) when something happens.